Define: Jumbo CD

UK Accounting Glossary

Definition: Jumbo CD



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Full Definition of Jumbo CD


A jumbo CD, or certificate of deposit, is a CD having a minimum denomination of $100,000. Individuals and institutions alike can use the CD as a low-risk way to earn interest income. The depository institution may offer a better rate for the jumbo CD than it does for a standard CD for the same term, but the jumbo CD rate is still determined competitively by market forces. In every other respect, the jumbo CD is like a standard CD. Typical maturities for a jumbo CD are 1 to 6, 9, 12, 18, 24, 30, 36, 48, or 60 months. Early withdrawal of a jumbo CD can incur a significant penalty. Note that a jumbo CD deposited by one individual can be fully insured by the FDIC, but only for $100,000.


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Jumbo CD. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/jumbo-cd/ (accessed: April 02, 2020).
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Jumbo CD. PayrollHeaven.com. Retrieved April 02, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/jumbo-cd/

Definition Sources


Definitions for Jumbo CD are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.